CHICAGO - After years of building up a rainy-day fund, Nebraska is now one of only a handful of states not facing a budget crisis. But as state leaders begin to craft a new budget for the upcoming biennium, it's likely they will move to dip into the cash reserves in order to stave off a deficit stemming from weaker-than-expected revenues.
Fiscal analysts recently forecast that Nebraska faces a $377 million shortfall in its upcoming biennium that starts July 1. The shortfall ends four consecutive years in which Nebraska's revenues exceeded estimates. Officials warned revenues could decline further next year if the national economy continues to bite into state.